Financial results for companies in the tire and automotive aftermarket industries varied in the most recent quarter

based upon market conditions, gas prices, raw materials costs and foreign exchange rates.
Carlisle
Charlotte, N.C.-based Carlisle Companies Inc. reported earnings before interest and income taxes from continuing
operations of $69.5 million for the third quarter, a 31-percent increase over the same period in 2005.
Net sales from continuing operations of $648.4 million in the quarter were up 18.9 percent over last year.
Organic sales growth accounted for $89 million, or 86 percent, of the improvement over the prior-year quarter,
primarily as a result of strong showings in the company's construction materials, specialty trailer and wire and cable
businesses.
Net income for the third quarter was $38.5 million, up 95.4 percent from the $19.7 million posted in the same period
of 2005.
In the Industrial Components unit, which includes Carlisle Tire & Wheel, sales were essentially flat at $164.1 million
as consumer demand in the outdoor power equipment market was soft, the company said.
The Construction Materials unit, which houses Carlisle's rubber roofing business, posted net sales of $311.8 million in
the third quarter, a 32.6-percent increase over the like period of 2005, primarily due to higher membrane and
insulation volumes.
The third quarter EBIT of $52.5 million was a 23-percent rise over 2005.
For the nine months, Carlisle's sales from continuing operations rose 17.2 percent to $1.96 billion, and net income
improved 64.4 percent to $135.8 million.
Michelin
Group Michelin reported 4.9-percent sales growth in the third quarter on higher selling prices wordwide and
increased unit sales in Europe and Asia.
By contrast, business in North America continued to lag behind 2005 as replacement tire demand was sluggish across
the board and passenger original equipment shipments slumped as well, Michelin said.
The firm did not report earnings at this time but did say it expects its operating margin before non-recurring items to
be close to 8 percent for the full year, about on par with last year.
Sales for the three months ended Sept. 30 hit $5.08 billion on 2.2-percent larger volume and a 4.1-percent boost
from better pricing and product mix. Exchange rate differences offset the sales gains to a degree. Sales for the nine
months were up 5.1 percent to $15.1 billion.
Although North American replacement passenger and light truck tire demand remained weak, Michelin said it
monitored a slight improvement in September, especially among distributors to end-users.
While the market as a whole declined. Michelin said its flag brands continued to gain market share as its share of the
private and associate brand segment continued to shrink.
While the overall North American markets were weak, Michelin noted gains of 4.1 and 10.6 percent in the H- and
V/Z-rated segments, respectively, through nine months.
Replacement truck tire demand continued below last year's pace, although Michelin said it gained share in the down
market both in new tires and retreads. OE truck tire demand grew 12 percent in the quarter, pushing the January to
September gain to 6.6 percent.
Raw material costs have eased the past several months, but Michelin said it still expects its raw material bill this year
to be nearly $1 billion higher than in 2005.
For the year, Michelin estimates the North American replacement and OE passenger/light truck tire markets will be
down by 3.7 and 1.2 percent, respectively, vs.2005, and the replacement truck tire market will fall 3.8 percent below
2005. OE truck tire sales should end the year 8.4 percent ahead of 2005.
Midas
Itasca, Ill.-based Midas Inc.'s third quarter sales fell 7 percent on lower replacement parts sales and the exit from
exhaust manufacturing, but net income more than doubled to $3.3 million.
The company's comparable store retail sales fell 1.8 percent in the quarter due to the effects of high gas prices in
July and August, the company said. The firm's U.S. tire sales grew 17.6 percent during the period.
"We are encouraged by the September improvement in U.S. retail sales that began as gas prices started to drop and
customers responded positively to our aggressive brake promotion," said Alan Feldman, chairman and CEO.
"However, even with the increase of approximately 5.5 percent in U.S. September comparable shop sales. our
comparable sales for the quarter were down 1.8 percent."
For the quarter, Midas reported sales of $45.3 million, down from $48.7 million last year. Net income of $3.3 million
in the quarter was up from $1.5 million last year, when Midas recorded charges of about $1.5 million to exit the
exhaust manufacturing and distribution business.
For the nine months ended Sept. 30, Midas' sales fell 10.4 percent to $133 million from $148.5 million a year
ago. Net income, though, was vastly higher at $9.7 million from $1.6 million a year ago.
Retail sales at Midas' 75 company-owned stores were $10.8 million for the quarter and $30.8 million for the nine
months, up from $9.6 million and $28.3 million, respectively. Midas opened six outlets in the quarter.
Midas operates about 1,800 franchised, licensed and company-owned shops in the U.S. and Canada.
Monro
Fueled by a 1.1-percent comparable store sales increase and $12.2 million in sales from new stores, Monro Muffler
Brake Inc. posted a 12.2-percent gain in fiscal second quarter sales to $107.3 million.
The sales from new stores include $9.9 million from Monro's purchase in April of 75 ProCare Automotive
stores. Comparable store sales were driven by a 9-percent gain in store tire sales and a 4-percent rise in comparable
store maintenance service sales.
Net income in the quarter fell 26.5 percent to $5.6 million on the firm writing off its $1.7 million initial investment in
Strauss Discount Auto.
Without the charge, Monro's net income would have been nearly flat at $7.3 million vs. $7.6 million last year.
Monro in August pulled out of its planned $13 million acquisition of Strauss after Strauss filed for bankruptcy.
For the fiscal half, Monro's sales rose 8.1 percent to $205.7 million from $190.3 million. Net income was down 14.3
percent to $13.2 million.
Robert Gross, president and CEO of Monro, said the chain's comparable store sales showed sequential improvement
during the quarter with a 5-percent increase in September. The firm also is making progress on the ProCare
integration.
"While we view fiscal 2007 as a transition year for the ProCare locations, we remain confident this group of stores
will positively contribute to our bottom line in fiscal 2008 and beyond," he said.
Mr. Gross also referred to his company's longstated desire to continue making acquisitions. "We believe the
challenging macroeconomic environment will present us with attractive acquisition opportunities and several
possibilities are at various states of negotiation," he said.
Sumitomo
Sumitomo Rubber Industries Ltd.'s operating income fell 10.4 percent in the first half of 2006, while sales rose 10.4
percent to $2.21 billion.
Net income fell 84 percent during the period to $16.7 million, while operating income slipped to $160.3 million.
Kobe, Japan-based Sumitomo did not comment on the results, published Aug. 29 in Japan, or offer any outlook for
the remainder of the year.
The company's tire division reported 21.5-percent lower operating income of $100 million on 11.5-percent higher
sales of $1.7 billion.
Sales in North America rose 18.5 percent to $286.9 million. Sumitomo's tire brands are represented in North America
by Treadways Corp. and Falken Tire Corp.
Yokohama
Tokyo-based Yokohama Rubber Co. Ltd. is revising upward its earnings forecast for its fiscal half-year based on the
impact of improved cost-reduction efforts, improved profits from North American operations and a weaker-than-
expected foreign exchange, rate of the yen.
For the six-month period ended Sept. 30, the Tokyo-based tire maker said it expects ordinary income to hit $25.2
million, a 173-percent jump over the previous forecast announced in May, while sales should end up at $1.87 billion,
a 0.9-percent improvement.
Boosted by the sale of some investment securities, net income is projected to hit $27.7 million, a 450-percent
increase.




In India, both Apollo Tyre and Balkrishna Industries reported a jump in sales and profits in the third quarter ended
31 Dec 2011.
Apollo reported three-month net sales of Rs 32 282 million (492 million), up from Rs 23.7 billion a year earlier. In
the nine months, sales reached Rs 89.2 billion, up from Rs 61.4 billion in the same period a year ago.
Profits also grew, but less spectacularly, due to increased cost of raw materials. Operating profit rose to Rs 2420
million in the three months, from Rs 2058 million. In the nine months, profits grew to Rs 5704 million from Rs 4589
million.
Affecting the results this year was a fine of ZAR 45 million (4.5 million) imposed by the South African authorities for
cartel activities in the country. Apollo said the company had decided not to contest the allegations to permit it to
move forward and concentrate on its business operations.
Balkrishna Industries (BKT) reported an increase of over 50 percent in new sales in Q3 to Rs 7588 million compared
with Rs 4950 million in the same period a year ago.Operating profit nearly doubled to Rs 1228 million compared with
Rs 679 million a year earlier. Net profit increased by the same margin to Rs 729 million from Rs 382 million a year
earlier.
BKT said this growth came on the back of capacity increases at its Bhiwadi and Chopanki plants and robust demand
for otr and agricultural tyres around the world.
MRF Ltd reported steady growth with third quarter net sales reaching Rs 28 755 million up from the figure of Rs 21.7
billion a year previously. Operating profit was slightly higher, at Rs 1928 million (previously Rs 1895 million).
News was less promising for JK Tyre, which moved to net loss in the third quarter despite seeing revenues up by 21
percent and bringing its new plant on stream.
Exceptional effects aside, operating profit was equivalent to the figure from a year ago, but interests costs were
significantly higher, and currency effects took the company to a net loss of Rs 213 million in the quarter, compared
with a profit of Rs 91.4 million a year ago.
The company said net sales for the quarter amounted to Rs 14180 million up from Rs 11 790 million a year
earlier. Operating profits were Rs 463 million, up from Rs 438 million a year ago. In the nine months, operating profit
reached 40 339 million, up from Rs 33 356 million a year earlier.


Tyre shortages and rising raw material prices have led to some price increases.
The financial health of the tyre industry took a marked turn upward in the first half of 2004, with all of the major
multinational tyre firms reporting improved earnings. Goodyear returned to the black in the second quarter after six
consecutive quarters of red ink.
The surge of positive performances prompted Bridgestone Corp. and Cooper Tire & Rubber Co. to revise their full-
year earnings forecasts upward.
The fly in the ointment, though, is uncertainty about raw materials prices.
Tyre company executives the world over are earning their salaries trying to increase selling prices to keep pace with
rising raw material prices. Some price increases have more than compensated for the higher costs, and this is
contributing to the improved results.
While the upward climb of prices for both natural and synthetic rubber--as well as other oil-derived raw materials like
carbon black or certain processing chemicals--is well documented, tyre companies also are being confronted with
increasing prices of steel and even some shortages of tyre cord and/or bead wire.
Nearly every earnings projection for the remainder of 2004 is tempered with warnings of raw materials' pricing
affecting future earnings performance. Cooper Tire, for example, said in its second quarter financials it expects
raw materials costs to be 5 percent higher than a year ago, while Goodyear put the estimate at 5 to 7
percent. Although this seems steep, tyre companies need to increase average selling prices by only three to four
percent to recoup the extra expense. Most have done that and more.
"Raw material costs remain stubbornly high and appear to be moving yet higher through the rest of 2004," said Tom
Dattilo, president and ceo of Cooper. "Prices for natural rubber appear to have levelled off, but steel and petroleum-
based products and most other commodities we buy are still going up."
Dattilo's comments accompanied a record sales and earnings performance by Cooper during the second quarter
and first half--for the six months, net income more than doubled to $57.2 million (47.3 million) on 20.3-percent
higher sales of $1970 million. Tyre unit operating income rose 40.8 percent to $42.1 million as sales climbed 20.3
percent to $999.7 million.
Through the first six months of 2004, Cooper's shipments have risen 9.8 percent compared with the industry's 5-
percent growth.
Bridgestone, coming off a 64-percent increase in first half net earnings, boosted its net profit forecast for fiscal 2004
by 39 percent, citing continued sales growth, improved tyre prices and a better product mix.
Bridgestone increased its forecast despite expecting a challenging business environment throughout the rest of the
year, company management said in a prepared statement. Bridgestone now expects 2004 net profit of about $945
million (4.4 percent of sales).
For the six months, Bridgestone reported net profit of $482 million while operating profit grew 29 percent to $833
million. First-half sales rose 3.7 percent to $10 600 million, aided by a 4-percent increase in tyre sales mainly on
healthy demand outside Japan.
Michelin's first-half net income nearly doubled as the French tyre maker improved its market position in
supportive tyre markets.
Net income surged 98.8 percent to $403.6 million, as net sales rose 6.4 percent to $9600 million, while operating
income was up 20.1 percent to $852.5 million, raising the earnings/sales ratio to 8.9 percent.
Factors affecting sales included negative impacts of exchange rates and raw material costs, while positive impacts
included higher sales volume, a better price/mix effect and the consolidation of newly acquired Viborg distribution
business in Europe.
For the year, Michelin expects to post a "visible improvement" in its operational performance.
Goodyear posted net earnings in the second quarter of $25.1 million--including operating earnings in the North
American Tire unit of $30.4 million--but the company was still $51.8 million in the red for the first half after a $76.9
million first-quarter loss.
Tyre division sales revenue grew 13.7 percent to $7740 million, while tyre unit volume overall grew 5.1 percent to
110.7 million units. 2004 revenues include $579 million in sales from the first-time consolidation of Goodyear's South
Pacific Tyres joint venture in Australia/New Zealand and T&WA Inc., a tyre/wheel assembly venture.
Rising raw material costs, pension obligations and outstanding debt continue to present challenges to the company's
balance sheet, company executives said. Raw materials costs alone grew 4 percent over last year, and Goodyear is
sticking to its estimate of a 5- to 7-percent hike overall this year, meaning the second half may see very rapid
growth.
Continental AG anticipates 2004 operating earnings and sales will exceed the 2003 fiscal performance, despite
having to take up to $144 million in charges against earnings to cover the costs of phasing out tyre production at its
Mayfield, Kentucky, plant.
For the period ended 30 June, Continental's operating earnings climbed 21 percent to $594.4 million on 9-percent
better sales of $6930 million, pushing the earnings/sales ratio up nearly a point to 7.9 percent.
Pirelli SpA reported 33-percent better operating income in the first half of 2004 on 8.3-percent better sales, as
the tyre division provided the bulk of the earnings.Operating profit from tyres grew 19.4 percent to $189 million,
while tyre unit sales improved 9 percent to $2000 million.
Hankook Tire Co. Ltd reported double-digit increases in operating and net earnings for the first half as sales moved
up 7.2 percent to $780 million. Operating profits rose 31.6 percent to $113.1 million (14.4 percent of sales) and the
net jumped 58.6 percent to $86.5 million (11.1 percent of sales). The South Korean firm is predicting 6.7-percent
sales and a near doubling in net income, according to information posted on its web site.
Nokian Tyres plc reported 76.6 percent higher operating earnings of $36.2 million and 18.9-percent better sales to
$307.7 million. The company attributed its improved profits to price increases, an improved sales mix and better
productivity than in the previous year.
~~~~~~~~
By Bruce Davis, ERJ Akron bureau


Tire Business staff report
1St quarter results
Dateline: AKRON
The first quarter brought sales gains for some tire industry companies, but rising raw material costs took a bite out
of earnings.
Bridgestone Corp.'s operating income slipped as revenue grew. Myers Industries Inc. also saw its earnings
challenged by raw material costs despite record sales, while Pep Boys Manny, Moe & Jack continued its
turnaround efforts but posted a loss for the quarter.
American Tire Distributors Holdings Inc. (ATD) reported higher sales, but a pre-tax loss resulting from Investcorp's
acquisition of ATD affected earnings.
Meanwhile, Yokohama Rubber Co. Ltd. reported lower operating income on higher sales for fiscal 2005.
Bridgestone
Bridgestone saw its operating income fall 6.6 percent in the first quarter, to $410 million, as rising costs of raw
materials ate into its profit margin.
Sales rose 7.9 percent, to $5.62 billion, with the European and Americas operations each contributing double-digit
growth.
Bridgestone management expects the earnings squeeze to continue through the second quarter, although not quite
as severe as originally projected earlier this year.First-half operating income is forecast to fall about 15 percent shy of
the 2004 performance, but this projection is a 20-percent improvement over the earlier forecast.
In the Americas, operating income fell 5 percent from a year ago, to $68 million, on 10-percent better sales of $2.35
billion, the Tokyo-based tire maker said.
Unit-wise, sales of passenger car and light-truck tires in North America increased in the replacement sector but
shipments to original equipment customers declined.Unit sales of truck and bus tires increased greatly in both the
original equipment sector and replacement sectors.
In the U.S., Bridgestone cited continuing "economic vigor," driven by personal consumption and rising capital
spending, for business improvements at its Bridgestone/Firestone subsidiary.
In Latin America, business improved in diversified operations.
Globally, the tire segment suffered an 11.2-percent drop in operating income while sales grew 7.6 percent to $4.46
billion on the strength of new product launches, increased marketing efforts and improved product mix.
Moving forward, Bridgestone said it is working on several fronts to ensure progress in this "challenging business
environment," including expanding global production capacity, enhancing sales initiatives, raising productivity and
improving logistics.
In the past six months, Bridgestone has disclosed $1.39 billion in tire capacity expansions, including four
new tire plants.
Pep Boys
Pep Boys' sales in the first quarter fell 0.3 percent to $564.2 million as the automotive retail chain continues its retail
turnaround.
The company also posted a net loss in the quarter of $2.39 million, vs. a profit of $14.6 million last year.
Pep Boys said comparable merchandise sales in the quarter increased 0.7 percent while comparable service revenue
fell 4.6 percent. The company said more accurate categories of its business are comparable retail sales, including do-
it-yourself and commercial sales, which grew 1 percent, and comparable service center revenue, including labor,
installed merchandise and tires, which fell 2.1 percent.
In the quarter, merchandise sales reached $463.8 million while service sales accounted for $100.4 million.
"As I have repeatedly cautioned investors, the near-term results of our turnaround will continue to be uneven," said
Larry Stevenson, chairman and CEO. "While Pep Boys has a very exciting future ahead, achieving fundamental and
sustainable performance improvements will take time."
Myers
Myers, parent company of Myers Tire Supply and Patch Rubber Co., reported record net sales in its first quarter a
27.3-percent increase yet net income slipped 12.3 percent primarily on high raw material costs.
Favorable currency translation helped push net sales to $236.2 million from $185.5 million in the prior period. Net
income fell to $7.77 million from $8.86 million last year.
"Sales in all business segments were strong during the first quarter," said Stephen Myers, who stepped down as CEO
May 1. "Our modest success with product price increases and internal cost reduction could not, however, offset
higher costs for plastic raw materials, which penalized earnings."
In the company's distribution segment, sales were up 12 percent to $42.1 million. Myers said its tire dealer markets
and others delivered strong sales for tire and under-vehicle service equipment and supplies.
Yokohama
Yokohama's operating profits slipped slightly in fiscal 2005 on higher raw materials costs, but revenue grew 4.5
percent on the strength of tire sales outside of Japan.
Despite the earnings setback in the fiscal year ended March 31, Yokohama management is forecasting healthy gains
in earnings and sales for fiscal 2006, although the reasons for the positive outlook were not disclosed.
For fiscal 2005, operating income slipped 0.6 percent to $195.5 million while sales climbed to $3.91 billion. Net
income grew 9.6 percent to $105.2 million, partly on lower taxes.
Tire Group sales and operating income grew 6.7 and 19 percent, respectively, to $2.87 billion and $169.5 million, on
the strength of "favorable" overseas business, particularly in Europe, Asia and the Middle East, Yokohama said.
The firm's North American operations nearly doubled operating income to $19.5 million on 7.5-percent better sales of
$671.2 million.
ATD
American Tire Distributors reported higher gross profits and sales in the quarter ended April 2 on the first-time
consolidation of activities acquired in 2004, but the firm suffered a pre-tax loss of $20.9 million due to transaction
expenses related to its acquisition by Investcorp.
ATD's first quarter revenue jumped 17.6 percent to $354.3 million, largely on the strength of the first-time
consolidation of sales by Target Tire and Big State Tire, which were acquired in the third quarter of 2004, but offset
partially by an additional week of revenues in the first quarter of 2004.
ATD's pre-tax loss of $20.9 million in the first quarter resulted from $28.2 million of transaction expenses relating to
Investcorp's $700 million purchase of ATD, which closed March 31. Gross profit increased $6.3 million as a result of
increased sales.
ATD reported pre-tax income in 2004 of $9.4 million.
Also contributing to the improved first quarter sales was an increase in sales of certain lower-margin private label
brands due to better supply and new markets.
ATD Chairman and CEO Richard Johnson said the firm's revenue continues to be strong through April and into May,
and the wheel business has begun to show signs of increased activity.


High raw material costs not a factor for everyone
Dateline: AKRON
The second quarter was strong for most tire industry-related companies as many saw earnings and sales grow
despite escalating raw material costs.
Continental A.G., Pirelli & C. S.p.A., Myers Industries Inc. and Titan International Inc. all reported gains in sales and
earnings during the quarter and first half compared with a year ago.
Group Michelin, despite higher sales from 2005, posted a 62-percent decrease in operating income because of raw
material costs. Midas Inc. also struggled as brake and exhaust sales were soft while tire sales rose more than 14
percent.
Continental
Hanover, Germany-based Continental A.G. reported improved operating earnings in the six months ended June 30
despite ongoing increases in raw materials costs and the "restrained" global automotive industry.
Conti's pre-tax operating earnings improved 17.1 percent, to $887 million, while sales rose 6.2 percent to $8.88
billion, resulting in a return on sales of 10 percent.
Conti's car/light truck and truck tire divisions both suffered declines in operating earnings during the period as the
cost of raw materials-particularly natural rubber and oil-increased by nearly $195 million over the comparable 2005
period, Conti said. The firm's earnings also were affected by $56 million in charges set aside to cover the costs of
closing the Charlotte, N.C., tire plant.
The car/light truck division's operating income fell 14.4 percent to $260.4 million, while sales rose 7.8 percent to
$2.76 billion, dropping the margin two and half points to 9.4 percent.
The truck tire division's earnings fell 6.1 percent to $53 million as sales grew 7.8 percent to $884.2 million, resulting
in a margin of 6.1 percent.
Looking ahead, Conti Chairman Manfred Wennemer said, "We see these first-half results as especially encouraging
for our forecast of topping last year's sales and earnings. In the light of this performance we have no cause to
revise our outlook for fiscal year 2006-even though competitors operating in parts of our business have been forced
to do so."
Michelin
The continued high cost of raw materials dragged Group Michelin's operating income down 6.2 percent in the first
half, while sales grew 7.1 percent over 2005 on higher volumes and prices.
Michelin said its raw materials costs for the first six months of 2006 rose 21 percent over 2005, representing an extra
$450 million in spending. Michelin said it expected the increases for the full year to exceed $1 billion.
Michelin said the truck tire business suffered particularly from higher raw material prices. Despite raising prices for
truck tires during the period, the firm said it had been unable to pass on all the increases.
A bright spot was the firm's specialty activities-earthmover, motorcycle, industrial tires, etc.-whose earnings jumped
63.8 percent over 2005.
As a result, Michelin's operating profit before non-recurring items fell to $818.8 million; sales grew to $10.2 billion.
Provisions taken to cover the closing of the BFGoodrich plant in Kitchener, Ontario, reduced the operating income by
$202.6 million, dropping the operating margin 3.2 points to 6 percent. Net income was down 28.2 percent to $451.7
million.
"Over the past two and a half years, the repeated increases in raw material prices have deteriorated Michelin's costs
by more than 1 billion euros," said Michel Rollier, managing partner. "As the Group is finding it difficult to fully
compensate for this evolution, it is becoming essential to accelerate the productivity improvement and cost reduction
programs that are already in place."
While sales rose 7.1 percent, the volume of tires sold during the period was up only 0.9 percent, Michelin said, with
strong gains in Asia and Europe offset by the weak North American markets.
Michelin said its sales of passenger/light truck tires in the European replacement market outpaced the market, which
grew about 3 percent, while its OE sales were down.
In North America, Michelin said sales of its flag brands-Michelin, BFGoodrich and Uniroyal-maintained their market
share in a down market, while demand for associate and private brand tires was "very depressed." Overall, the
North American replacement market was off 4.7 percent for the period.
Midas
Itasca, Ill.-based Midas Inc. reported a profit in the second quarter though comparable store sales fell 3.8 percent
after 12 consecutive positive quarters because of high gas prices and consumer uncertainty, the automotive service
chain said.
Midas's sales fell 10.3 percent to $45.1 million in the quarter as net income improved to $2.6 million from a loss of
$2.5 million last year, when the company reported significant charges related to its exit from exhaust
manufacturing. Operating income improved to $6.3 million from a loss of $2 million last year. Tire sales grew more
than 14 percent, Midas said, as maintenance revenue also grew. Sales in brakes and exhaust were weak.
For the first half of the year, sales fell 12.1 percent to $87.7 million. Net income rose to $6.4 million from $100,000
last year.
Midas operates more than 1,800 franchised, licensed and company-owned shops in the U.S. and Canada.
Myers
Myers Industries Inc. reported record sales in the second quarter of $238.2 million and also said it has decided to
sell its European businesses to focus on key business segments.
Akron-based Myers, which among other operations distributes tools, equipment and supplies for the tire and wheel
service industry, said the quarterly sales were a 6-percent improvement over last year's $225 million. But a goodwill
impairment charge of $109.8 million contributed to a net loss of $100 million. Without that charge, net income would
have been up 92 percent to a record $9.8 million from $5.1 million last year.
In the distribution segment, Myers' sales were $50.1 million, up 2 percent from $49.4 million last year. Income
before taxes rose 4 percent to $5.5 million.
Myers said it plans to use proceeds from the divestiture to reinvest in other segments and reduce debt.
Pirelli
Milan, Italy-based Pirelli & C. S.p.A., buoyed by strong earnings and sales growth by its Pirelli Tyre unit, reported
solid earnings in the six-month period ended June 30.
Pirelli reported operating income of $270 million, a 6.7-percent increase over 2005, on 3.4-percent better sales of
$3.06 billion.
Pirelli Tyre's operating income of $243.7 million was up 4.1 percent over 2005 while sales grew 12.4 percent to
$2.52 billion on the strength of increased volumes and better product mix, the company said. As a result, the
operating earnings ratio fell slightly to 9.6 percent, reflecting the impact of higher raw materials costs and the start-
up effect of the company's new factory in China.
Pirelli management forecasts an improvement in operating results for the full year, but did not quantify the
improvement.
Titan
Despite a decrease in agricultural equipment demand and higher raw material costs, Titan International Inc. reported
increased sales and profits in its second quarter.
Sales rose 30 percent to $175.2 million from $134.7 million a year ago as net income increased 33.4 percent to $5.6
million from $4.2 million last year.
Titan Chairman and CEO Maurice Taylor Jr. said farm equipment demand was down about 5 percent in the U.S. as
raw material costs continued to escalate.
For the first half, sales increased 32.1 percent to $357.8 million, in part on an increase in market share from the
increased manufacturing capacity from the Freeport, Ill., facility. Quincy, Ill.-based Titan acquired the plant last
December as part of its $100 million buyout of Goodyear's North American farm tire business.
Net income fell 7.8 percent in the half to $14.2 million. Income before taxes, however, rose 45.9 percent to $23.7
million in the period. Titan recorded an income tax expense of $3.7 million in the quarter and $9.5 million for the half
compared with income tax benefits in the prior periods.


Dateline: AKRON
Three tire industry companies reported sales and earnings growth in the first quarter, but one firm still is cautious
about its outlook despite the gains.
In the quarter, Alliance Tire Co. (1992) Ltd. reported slim earnings, breaking four straight years of losses. Bandag
Inc. also saw earnings and sales boosts in part from an improving North American trucking industry. Carlisle
Companies Inc., however, is more cautious despite its increases so far this year.
Alliance Tire
Alliance Tire posted net earnings of $900,000 last year, breaking a skein of four straight years of losses.
Alliance said it also posted significant gains in operatings earnings, and sales grew 29.7 percent to $129.3
million. Sales from exports accounted for 76 percent of revenues. That was up from 71 percent in 2003 as exports
outgrew domestic sales 39 to 7 percent.
"The improvements we saw in 2004 reflect Alliance's greater efficiency, expansion into new markets and
opportunities to serve key markets that are experiencing tight supplies," said Alliance President Joseph Anglister. The
company is experiencing record sales in both North and South America, he added, without giving specifics.
The Israeli tire maker's growth occurred despite higher raw materials costs and fluctuating currency rates, Mr.
Anglister said. The latter's effect on company loans caused the firm to fall into the red in the fourth quarter despite a
rise in operating income.
Production increased 20.9 percent to 38,090 metric tons. Alliance makes agricultural, multi-purpose and
industrial tires for export and passenger and light truck tiresfor the local market.
Bandag
With help from an improving North American trucking industry, Bandag reported a 7.5-percent increase in net sales
and a 48.3-percent growth in net earnings for the first quarter.
Muscatine, Iowa-based Bandag reported net sales of $186.6 million, up from $173.5 million last year. Net earnings
jumped to $5.96 million from $4.02 million.
Bandag said net sales were positively affected by a sales increase of $10.8 million by its Speedco truck lube
subsidiary, which it purchased controlling interest in last year. Also helping were a 5-percent increase in North
America business unit volume coupled with a 7.2-percent increase in Speedco's net sales and an increase of 6
percent in international business unit volume with a net sales boost of 29 percent.
Currency translation also positively impacted sales by about $4.2 million. Factors negatively impacting overall sales
included an $8.3 million decline in sales from divested locations of Bandag's Tire Distribution Systems (TDS)
Inc. subsidiary and a 17-percent decrease in European business unit volume as well as a 9-percent fall in sales in the
TDS unit.
"On the positive side, we believe continued strength in the trucking industry in our major markets will work to
Bandag's benefit ," said Martin Carver, chairman and CEO of Bandag. "At the same time, we recognize that
continued increases in raw material and transportation costs will be a concern throughout 2005."
Carlisle Companies
Despite double-digit growth in sales and earnings in the first quarter, Carlisle is cautious about the remainder of
2005, citing "uncertainties" about raw material costs and interest rates.
"Though our key markets remain strong and our outlook for improved pricing and margins is positive, we must
temper our optimism," said Richmond McKinnish, president and CEO. "Uncertainties surrounding future costs of oil-
based commodities and certain chemicals as well as the impact of rising interest rates require that we maintain our
2005 guidance of $4.10 to $4.25 per diluted share for income from continuing operations."
For the quarter, Charlotte, N.C.-based Carlisle's net income from continuing operations rose 29.2 percent to $30.1
million; sales jumped 17.7 percent to $592.3 million.
Industrial components, which includes Carlisle Tire & Wheel, reported 8.8-percent better operating earnings and
15.5-percent higher sales. Carlisle attributed most of the net sales increase-to $222 million-to growth in the tire and
wheel business in the commercial power equipment and lawn care, ATV and replacement supply chains.The addition
of sales from solid tire maker Trintex, acquired last June, accounted for about one-third of the sales improvement
over 2003.

Japans tire industry recovered strongly in 2010 from the 2009 downturn, according to the Japan
Automotive Tyre Manufacturers Association.
JATMAs latest edition of its tire industry report shows passenger tire production in the nation consumed 1.17
million metric tons of rubber in 2010. That compared with 973 million tons in 2009.
The countrys tire makers used 1.36 million tons of rubber in 2007, the peak for rubber consumption.
JATMA said Japan produced 164.6 million tires in 2010, an increase of about 18.8 percent from 2009. The
passenger tire segment was the fastest-growing sector, with 125 million units produced. Light truck tire production
hit 22 million units, and heavy truck tire output 11.2 million.

Pre-tax profits at JK Tyre & Industries Ltd jumped for the nine-months ended 30 June 2008. but remained level for
the 3 month period.
For the nine months. JK reported pre-tax profits of Rs1064 million [16 million) on sales of Rs 27 187 million (409
million), up from Rs 660 million on Rs 24 098 million in the same period a year earlier


AKRONThe first half of the year provided mixed results for tire and industry-related firms, with some showing
either slow growth or operating losses.
Nokian Tyres P.L.C. was the only tire maker to report double-digit sales growth. Group Michelin's sales grew slightly
but the company is forecasting lower earnings expectations during the second half due to weakened
markets. Continental A.G.'s profits fell as its North American subsidiary suffered an operating loss, while Pirelli
S.p.A.'s earnings and sales received a boost from its cable business.
Meanwhile, Snap-on Inc. plans to cut 4 percent of its workforce in response to lower first-half earnings.
Nokian Tyres
Nokian Tyres P.L.C. reported operating earnings of $6.3 million for the January-June period, as both its
manufacturing and retailing units were in the black. Sales grew 13 percent to $154.6 million as demand from the
U.S, Eastern Europe and Russia picked up.
The Nokia, Finland-based tire maker attributed its rising earnings to price increases, an improved sales mix, lower
than expected material costs and increased market shares in the Nordic markets.
Nokian said demand for its passenger tires in North America picked up considerably, whereas sales of
forestry tires fell 40 percent. Sales of retread materials in North America developed favorably.
Regardless of the evident downward economic trend, Nokian Tyres said it expects its performance to improve in
the second half, and particularly in the final quarter of the year. The company therefore will focus on the upcoming
winter tire season, and hone its manufacturing business and tire chain for maximum performance.
The forecast is for 10-percent sales growth and improved earnings over fiscal 2000.
Continental
Continental Tire North America Inc. suffered an operating loss of $47.7 million in the first half of 2001, dragging
Hannover, Germany-based Continental A.G.'s six-month operating profit down 19.1 percent to $194.5 million. Sales
grew 12 percent to $4.95 billion, dropping the earnings ratio to 3.9 percent.
Conti blamed Continental Tire North America's loss on weakening demand for passenger and commercial tires in
both original equipment and replacement markets, continuing pressure on prices, high energy costs and the cost of
modifying its plants. Continental's sales in North America fell 6 percent in dollar terms, to $764 million.A year ago,
Conti Tire North America reported operating earnings for the half-year of $18 million.
Despite the loss and drop in sales, Conti said it improved its market position for both passenger and
commercial tires, but it did not elaborate.
Among Conti's other business units, the firm's commercial tire business in Europe suffered a loss, whereas the
passenger tire and automotive systems units boosted earnings 29 and 5.5 percent, respectively. The ContiTech
engineered rubber products unit, which is being divested, reported a slight dip in earnings.
Conti also reported non-recurring costs of nearly $53 million for reorganization measures related to the cessation of
truck tire production in Herstal, Belgium, and of retreading operations in Bad Nauheim, Germany.
For full-year 2001, Continental anticipates the continuing improvement of the passenger tire business in Europe will
help the company offset the drop in earnings related to tires in North America, and result in an increase in overall
operating earnings.
Group Michelin
Based on the continued weakness of the North American marketplace and emerging signs of weakness in other key
global markets, Group Michelin has downgraded its operating earnings expectations for 2001 by about 15 percent, to
between 6.2 and 6.8 percent of sales.
During the first half of fiscal 2001, Michelin's sales grew 4.5 percent to $6.95 billion, while operating earnings fell 9
percent, to $442.3 million. Net income, aided by the sale of shares in the French car maker Peugeot S.A., rose 57
percent to $333.3 million.
In North America, Michelin reported 0.2 percent growth in passenger/light truck tires, as replacement sales grew 4.6
percentincluding 12.8 percent growth of the Michelin brandand original equipment sales fell 10.4 percent.
Despite the relatively low growth, Michelin gained market share in North America as the replacement market declined
2.3 percent and OE sales were down 12.5 percent during the period, Michelin said.
In truck tires, though, Michelin's replacement market sales drop was nearly twice that of the 11-percent market
drop. From April on, however, the company started to regain share as it reviewed price increases announced in
December 2000. In North American truck OE, Michelin's sales drop mimicked the overall OE demand decline of 42
percent.
Michelin attributed its global net sales gain in part to better pricing and product mix; its sales in tons actually fell, by
2.2 percent during the period.
Michelin is counting on its next round of price increasesof up to 5 percent starting Aug. 1 in North America and
Europeto help bolster second half results.
The situation in truck tires is particularly acute, according to a Morgan Stanley Dean Witter analysis, because
Michelin traditionally has made a disproportionate amount of profits from truck tires; in fiscal 2000, for example,
truck tires represented one-fourth of sales, but one-half of earnings.
In the U.S., Michelin told analysts it expects to garner about a third of the business to replace 13 million P-metric
light truck tires for Ford Motor Co., which is recalling about 2.7 million of its Explorer sport utility vehicles and F-150
pick-ups to have their Firestone tires replaced.
Also in North America, Michelin is still formulating the exact nature of its restructuring program designed to save the
company $125 million in overhead costs. The company is expected to announce details during August or
September. Personnel cutbacks are expected to be part of the package.
Pirelli
Pirelli S.p.A. reported measurable gains in sales and earnings for the first six months of fiscal 2001, although the bulk
of the gains can be chalked up to first time consolidation of acquisitions in Pirelli's cable business.
Pirelli said its tire business performed on par with the first six months of 2000, despite unfavorable market
conditions.
The Italian company reported operating earnings before interest and taxes of $218 million, a 14-percent increase
over the 2000 period, and sales of $3.54 billion, a 9.7-percent rise.
For the remainder of 2001, Pirelli said it expects a soft third quarter before key markets rebound in the fourth
quarter. Pirelli will publish detailed figures in early September.
Snap-on
Automotive service equipment maker Snap-on Inc. saw its second quarter earnings plummet fivefold to $8.9 million
from $45.7 million in the same period a year ago, as the company experienced a decline in sales of big-ticket
equipment and diagnostics products.
Sales for the Kenosha, Wis.-based company dropped 6.7 percent in the quarter to $525.6 million.
The second quarter results included a special after-tax charge of $14.4 million related to the costs for consolidation
and closing of seven facilities (including two previously announced sites), elimination of 98 positions, management
transition and the termination of a European equipment supplier arrangement, Snap-on said.
To reduce costs and improve operating performance, the company said it expects to cut its workforce of 14,000 by
4 percent, or 560 employees, and will take pre-tax charges totaling $65 million to $75 million for 2001, including the
second quarter charges.
Much of the restructuring plan focuses on streamlining Snap-on's equipment and diagnostics operations in Europe
and North America to improve profitability, the company said.
For the first half, Snap-on's earnings fell dramatically to $35.8 million, from $106.4 million in 2000. Sales for the
period declined 4.9 percent to $1.05 billion.



Dateline: AKRON
Tire companies saw mixed financial results during the third quarter as varying market conditions helped some gain
sales and profits while others were negatively impacted.
Currency declines drove Group Michelin's sales down, while Myers Industries Inc. saw a rebound in net earnings
from the previous year.Meanwhile, Titan posted another net loss as economic instability overseas and plant
shutdowns affected its business.
Continental
Despite continuing losses by Continental Tire North America Inc. (CTNA), Continental A.G. reported improved
operating and net earnings for the nine months ended Sept. 30.
For fiscal 2002, Continental anticipates a slight increase in sales, and based on the nine-month results, expects full-
year earnings will be considerably above the 2000 level.
Conti did not elaborate on its losses in North America, other than to say the unsatisfactory tire business earnings in
North America will force the company to amortize CTNA's remaining goodwill of $47 million. However, a report by
Morgan Stanley Equity Research stated that CTNA's loss was $27.4 million for the third quarter and $80.4 million for
the nine months. The loss includes costs of $19.6 million related to the recall.
It will be shown as an expenditure in the fourth quarter operating earnings of both the passenger and
commercial tire divisions, Conti said.
Cont's operating earnings for the nine months jumped 77 percent to $536.7 million, while net profit was up 49
percent to $213 million after accounting for one-time restructuring charges.
Sales in the January-September period rose 3 percent over the 2001 period to $8.3 billion, although nearly all the
gain was due to the first-time inclusion of sales from the automotive systems supplier Conti Temic.
The passenger tires division reported a 5.2-percent drop in sales to $2.71 billion, although unit sales were on par
with 2001, Conti said. Sales in the third quarter fell 15 percent.
Despite the sales drop, the division boosted operating earnings by more than 70 percent to $155.8 million.
In commercial vehicle tires, Conti reported a slight drop in sales, to $960 million, despite improved sales in North
America. The division moved back into the black, reporting an operating profit of $80.3 million for the nine months.
Michelin
Group Michelin reported a 3.2-percent drop in third quarter sales, to $3.58 billion, but the company insists it still is on
track to achieve its targeted operating margin of 7.0-7.4 percent for 2002.
Market conditions during the period were difficult but in line with forecasts, the company said.
Sales for the nine months ended Sept. 30 were up 2.7 percent, to $10.8 billion. Earnings were not disclosed at this
time.
Declining U.S. and South American currency values diluted sales by 2.7 percent, offsetting a 2.1-percent rise in sales
volumes, the company said. Michelin added that its efforts to increase the level of higher-value products in its sales
mix were offset by growth in the lower value original equipment market.
This effect was most marked in North America where the OE market for passenger car/light truck tires grew by 7.1,
while replacement tire sales fell 2.9 percent.
In North America, the company's sales fell 4.8 percent in the quarter but still outperformed the market overall,
Michelin said.
The sales decline was magnified, Michelin said, because of the effects of the Ford Motor Co. recall of 13 million
Firestone sport-utility vehicle tires a year ago.
This market anomaly resulted in a 21.7-percent industrywide drop in replacement SUV tire shipments in the quarter,
and 11.6-percent for the nine months.
Michelin said it supplied more than 30 percent of the tires replaced in Ford's action-higher than its normal market
share in this segment-meaning the effect on its sales was amplified even more.
Michelin's truck tire business in North America grew 4.3 percent in the quarter, but the growth must be viewed in
perspective, as Michelin is still recapturing the significant market share drop it incurred in the first quarter of 2001,
when it tried to hold the line on falling prices.
On the cost side, Michelin downplayed the impact of rises in raw materials costs, which represent 21.4 percent of its
net sales. Despite a 75-percent rise in natural rubber prices-expressed in Singaporean dollars-Michelin said it paid
only 15 percent more for the commodity over the first nine months of 2002.
Natural rubber represents 19 percent of the group's raw materials costs compared to synthetic rubber, 26 percent;
and carbon black, 19 percent, Michelin noted.
Price rises for the latter two materials will impact most on the group's results in the first half of 2003, it added.
Myers Industries
Akron-based Myers Industries Inc., parent of Myers Tire Supply and Patch Rubber Co., reported an 81.4-percent
surge in net income to $3.07 million for the third quarter. Net sales for the quarter rose 3.7 percent to $146.6 million.
For the nine-month period, Myers' net income soared 54.9 percent to $19.9 million. Net sales, however, dipped 2.3
percent to $448.7 million due mainly to uneven market conditions that heightened competitive circumstances and
product pricing pressures, according to Myers.
The company said foreign currency translation increased total sales and manufacturing segment sales by $3 million
for the third quarter and $2.5 million for the nine-month period.
Continued weakness in the industrial markets squeezed volume and margins in the manufacturing segment,
according to Stephen Myers, president and CEO.
SmarTire
SmarTire Systems Inc., a Richmond, British Columbia-based developer of tire pressure and temperature monitoring
technology, fell deeper into the red in the fiscal year ended July 31, but reiterated its position that it is well-
positioned to take advantage of the market opportunities created by the Transportation Recall Efficiency,
Accountability and Documentation (TREAD) Act.
SmarTire's net loss increased to $6.8 million (U.S.) from $5.5 million a year ago, as sales rose 29.9 percent to $1
million.
The company blamed its fiscal 2002 financial performance on the stock market's downturn and on the delays
affecting the implementation of National Highway Traffic Safety Administration rulemaking that requires the
installation of tire pressure monitoring systems in all passenger vehicles and light trucks beginning Nov. 1, 2003.
Titan
Quincy, Ill.-based Titan International Inc. posted a net loss of $17.7 million for the third quarter, largely due to Titan
tapping a $9.6 million cash reserve related to its investment in Fabrica Uruguaya de Neumaticos S. A. (FUNSA) in
Uruguay.
Uruguay's temporary closure of its banking system and economic instability jeopardized Titan's reorganization plans
for FUNSA, according to the company.
Net sales for the quarter rose 4.1 percent to $104.7 million. For the nine-month period, Titan's net loss totaled $20.2
million compared with a net loss of $13.3 million in 2001. Year-to-date net sales fell to $354.2 million from last year's
$356.9 million. Extended summer shutdowns of Titan's original equipment customers and escalated material costs
prevented the company from further reducing the loss incurred.
Titan CEO Maurice Taylor Jr. said the third quarter historically is tough for Titan because of customer plant
shutdowns and a month-long holiday break observed by European manufacturers.
Sales are the key to Titan's profitability, tire production is increasing and we are aggressively attacking costs, Mr.
Taylor said. The added steel and natural rubber costs should be recovered over the next two quarters. While the
FUNSA situation is regrettable, Titan has determined it is necessary to write-off this investment, and if conditions
improve in Uruguay, Titan will attempt to salvage this business.


By and large, the tire and rubber industry had a strong earnings performance during 1994. Although these
companies won't likely See income surges as large on a percentage basis this year, their domestic customer base is
probably becoming more predictable.
Domestic tire demand expanded nicely in 1994, and not counting some of the foreign tire manufacturers, which are
still fighting with unionized labor, most companies made money. Unit growth was available to original equipment
makers and replacement manufacturers alike.
Although OEM business provides glimpses of declining from a peak, tire makers probably aren't too concerned about
it yet, for several reasons. Income from replacement tires starts rising about eight quarters after the end of a strong
OEM cycle, as tires usually begin to wear out after two years and car owners begin purchasing replacements that
return tire makers better profits.
Earnings growth will likely continue steadily, thanks to the income generated by a growing and ever-older automotive
fleet long term. Consequently, individual stocks in this group have appeal for appreciation potential that may be of
interest to patient investors. Our favorites in this group are Cooper Tire (CTB $25.50) and Bandag Inc.(BDG $63.25).
GRAPH: DOW JONES ANALYSIS
GRAPH: STANDARD & POOR'S ANALYSIS